- Bitcoin price struggled to hold ground and continued to move lower, as a new low below 200.00 was also created.
- The price has several hurdles on the upside and if it corrects higher it won’t be easy for buyers to break 100 SMA.
Bitcoin price struggled a lot and there are many signs that more losses cannot be discarded in the near term.
Why 200.00 is Important?
We highlighted this past week that the price has scope of more losses in the near term with a break of 200.00. There was a solid downside reaction noted in the Bitcoin price this past week, as the price continued to head lower. There was a lot of bearish pressure and as a result the price breached the previous low and settled below it. The new low formed was below the 200.0.
The price stayed below the 100 hourly simple moving average, which is a bearish sign as suggests that sellers remain in control. We also highlighted this past week that there is a bearish trend line on the hourly chart, which is continued to act as a resistance for buyers.
One critical point to remember is that the 100 hourly SMA is positioned with the bearish trend line, pointing that buyers are under a lot of pressure. If the price attempts to correct higher, then an initial resistance can be seen around the 61.8% fib retracement level of the last drop from the 262.00 high to 197.95 low. There is no doubt that there was a nice reaction around 200.00, which pushed the price higher sharply. Let’s see if there is a break in the short term.
Intraday Support Level – 200.00
Intraday Resistance Level – 240.00
Overall, selling rallies close the highlighted trend line and resistance area is a nice idea.
Charts courtesy of Trading View